Pakistan has always denied US allegations. Pakistanis protest against Donald Trump.
The US military says it has decided to scrap a 300 million aid package to Pakistan.
The Pentagon says the aid was cut off because Islamabad failed to deal with militant groups. They say Pakistan has taken virtually no action to deal with the militants.
Earlier, another 500 million in aid was withdrawn from Pakistan.
President Trump has previously accused Pakistan of cheating the United States despite providing billions of dollars in aid.
Pentagon spokesman Lt. Colonel Koe Faulkner said the money would now be spent on other areas that the United States needed to "prioritize" on an urgent basis.
However, this decision requires the approval of the US Congress.
Despite Pakistan being a close ally of the United States, the US State Department has strongly accused Islamabad of not taking effective action against terrorist networks operating inside the country.
These militant groups include the Haqqani Network and the Afghan Taliban.
"We will continue our pressure on Pakistan to take action against all terrorist networks," Colonel Faulkner said in a statement on Saturday. "This money was suspended before the aid. This money will now be spent elsewhere," he said.
US Secretary of State Mike Pompeo is scheduled to travel to Islamabad soon to hold talks with Pakistan's new Prime Minister Imran Khan. And before his visit, the United States announced that it was withdrawing funding.
Earlier in January, the US government announced that it was cutting back on its security assistance to Pakistan.
Many Western countries, including the United States, have long pointed fingers at Pakistan, saying the authorities are not taking action against terrorist networks operating inside Pakistan. They are crossing the border into Afghanistan and carrying out attacks there.
But Islamabad has always denied the allegations.
The Pakistani government has not yet commented on the latest US decision
